2.02.2010

Not a First Time Homebuyer? Here's how you may get a $6,500 tax credit.

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Many of you may have heard of the first time homebuyer tax credit of up to $8,000 that was implemented last year in 2009. However what if this is not your first time buying a home, what if you own a home right now but want to move up due to the lucrative market conditions. There is also a tax credit for you, the $6,500 tax credit is for those who have lived in their principle residence for 5 out of the last 8 years and want to make the move (up or down) into a new home. Another criteria is that the homeowners income doesn't exceed $125,000 (if taxes filed singly) or $225,000 (married filed jointly).

One restriction to the tax credit is the house you move into must be your new principle residence. If you sell or stop using the home as your principle residence within three years the government will take back the tax credit. Another restriction is the fact that no matter what you purchase the house cannot cost more than $800,000

Lets remember however that this is a TAX credit, NOT free money. This money will be credited to you when you file your tax returns in either 2009 or 2010. But with this information you can spend that money now to fix up your lawn, repaint the house, and redecorate the interior which will bring you a higher price on your property and use the credit, come tax time to pay off your bills.

Because of the many legal and tax situations that can arise through the sale and purchase of real estate ALWAYS consult with your ATTORNEY or ACCOUNTANT before getting into contract.

For more information on the Homebuyer Tax Credit visit the IRS tax credit homepage.

Thomas Feng, Realtor
Thomas.Feng@CBnorcal.com

Copyright 2010 by Thomas Feng, All Rights Reserved. You may reblog or republish with links back to this post.

* THIS ARTICLE WAS ORIGINALLY PUBLISHED AT http://www.SaratogaHouses.blogspot.com *

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